Starting from Scratch: Strategies for Success from Netflix and Spotify, for CEOs and CFOs Everywhere

Barry McCarthy was CFO at Netflix and Spotify during periods of explosive growth, and he took both companies public – in different ways. Our latest episode of Growth Journeys pairs exceptional operator Barry McCarthy with veteran investor Woody Marshall, a Spotify board member and TCV General partner. Together they explore how “visionary” founders and CEOs need to be able to see the future while staying grounded in the present, and how strategic CFOs develop their own ability to see around corners and help the team navigate both choppy waters and growth opportunities in finance and operations. McCarthy and Marshall then apply these lessons to the timely topic of managing in a crisis, and the critically important relationship between CEOs and their boards of directors. Take-aways include:

  • Three fundamental leadership qualities exemplified by Reed Hastings and Daniel Ek.
  • How McCarthy learned to staff and task his team for challenges that were still months in the future.
  • How taking risks separates industry leaders from the pack.
  • Why Spotify went public with a direct listing – and why others are following its lead.
  • The single most important adjustment that leaders must make in a crisis.
  • The invisible but essential quality that binds CEOs and their boards of directors

For all this and more, settle back and press play.

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The views and opinions expressed are those of the authors and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the authors and disclaims any responsibility therefor. This interview and blog post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Creating and Nurturing a High-Performance Culture: Lessons from Netflix for Businesses of All Sizes

Netflix founder Reed Hastings is known for placing big bets on bold ideas. One was turning conventional corporate culture on its head by stripping away limitations on employees, so they could be more free – and more accountable – to achieve shared goals. It worked so well that he published the blueprint online as the “Netflix Culture Deck.”

TCV’s Founding General Partner Jay Hoag, a long-time Netflix board member, chats with Patty McCord, Netflix’s chief talent officer for 14 years and co-creator of the Netflix Culture Deck, for this exclusive podcast about her new book: “Powerful: Building a Culture of Freedom and Responsibility.” Together, they detail the origins of the culture deck, what happened when it went viral (it’s been viewed more than 15 million times), and how CEOs can apply the principles that made Netflix a magnet for high-performance talent.

The path to industry leadership is rarely smooth, and those that make it to the mountaintop must adapt to both market opportunities and dynamics. Jay and Patty anchor their conversation in historic pivots and lessons learned from Netflix’s evolution to become the world’s leading internet television network. Patty reveals how vigorous management debate and candor with employees kept morale high during both peaks and troughs. The podcast includes numerous lessons for successful recruiting and creating the conditions for people to do their best work. Topics covered include:

  • What really attracts top talent
  • How to ensure that employees link their work to high-level strategy
  • Why employee compensation should not be secret
  • How to sustain the speed of a small company as you build a large one
  • Why lavish perks do not promote higher performance
  • How to use a product-development perspective to enhance culture

 

For an inside story on the cultural principles that made Netflix a household name worldwide, settle back and click play.

 

TCV is an investor in Netflix and Jay Hoag serves on the board of directors of the company.

The views and opinions expressed in the transcript above are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). This transcript is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/